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Why Veeva Systems Shares Are Diving Friday

Benzinga ·  May 31 10:16

Veeva Systems Inc. (NYSE:VEEV) shares are trading lower after it reported first-quarter FY25 results.

Revenue rose 24% Y/Y to $650.3 million, beating the consensus of $642.02 million. Subscription services revenues increased 29% Y/Y to $534.0 million.

Adjusted operating income grew 66% Y/Y to $260.9 million in the quarter. Adjusted EPS of $1.50, beating the consensus of $1.43.

As of April-end, cash and equivalents stood at $1.20 billion and short-term investments of $3.6 billion.

Outlook: For the second quarter, Veeva Systems expects revenue of $666 million-$669 million vs. consensus of $675.29 million and adjusted EPS of $1.53-$1.54 vs. consensus of $1.52.

For FY25, the company reiterated adjusted EPS of $6.16 (vs. $6.15 estimate) and adjusted operating income of $1.070 billion.

However, Veeva Systems lowered its outlook for revenue to $2.7 billion-$2.71 billion (from $2.725 billion-$2.740 billion) vs. a $2.73 billion estimate.

Also Read: Veeva Systems Analysts Lower Their Forecasts Following Q1 Results

Investors can gain exposure to the stock via First Trust Nasdaq Lux Digital Health Solutions ETF (NASDAQ:EKG) and Sterling Capital Focus Equity ETF (NYSE:LCG).

Price Action: VEEV shares are down 9.21% at $176.02 at the last check Friday.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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